Sergio Ramos Agrees to Sell Failed Developer to Kronos Homes

16 September 2019 Sergio Ramos, the footballer who plays for Real Madrid, has reached an agreement with Kronos Homes to sell a 51% stake in Desarrollos Inmobiliarios Los Berrocales SL. The developer owns half a million square meters in Vicálvaro, Madrid, and has debts of 39 million euros.

Kronos Homes will buy the 49.99% stake owned by Sergio Ramos himself and another 1% from his father and advisor, José María Ramos. The two invested 6.5 million euros in the real estate developer more than ten years ago. Kronos Homes has agreed to pay €2.5 million for the stake, leaving the footballer with 46,250 square meters of the land.

The fund also agreed to acquire that land at a gross price of 120 euros per square meter within four years, about double the amount Kronos had already paid for Proinsa (€51/m2). In total, therefore, Sergio Ramos will receive eight million euros by 2023. However, Ramos also owes interest on the original €30-million loan from Banco Pastor, totalling approximately 9 million euros.

Original Story: El Confidencial – Agustín Marco

Adaptation/Translation: Richard D. K. Turner

Kronos Sells 111 Homes During Q1 2019

20 May 2019 – Press Release

Kronos Homes sold 111 homes in Spain and Portugal during the first quarter of 2019 and started work on the construction of a new development, Oasis 325, in Estepona (Málaga).

The company plans to take its total investment to €2.4 billion this year, of which €1 billion corresponds to the planned investment in land in both Spain and Portugal.

By the end of 2018, the property development arm of Kronos owned a portfolio of 12,000 homes across 16 developments, which it plans to increase by 4,000 units during 2019 across 24 developments.

Kronos Homes currently has eight projects under construction: Nature and General Marvà in Alicante; The Edge, Horizonte, Panorámica, La Finca and Oasis 325 on the Costa del Sol and H2O in Badalona. It is planning to start work on another 6 projects in Andalucía, Cataluña and Madrid this year.

All of the projects undertaken by Kronos Homes reflect its #Puredesign philosophy and place a special emphasis on good architecture, unique design and the special integration of the environment, whilst ensuring great finishes.

Original story: Press Release

Translation/Summary: Carmel Drake

Kronos Homes Begins Work on Oasis 325 in Estepona

29 April 2019 – Kronos Homes

KRONOS HOMES, Kronos’ residential real estate development brand, has started work on its new residential project, Oasis 325, in Estepona. Designed by the architect Joaquin Torres of the A-Cero studio, the development will have 127 2- and 3-bedroom homes, along with penthouses and ground-floor flats with gardens. Prices range between 261,000 and 560,000 euros and, currently, more than 50% of the 127 flats have been sold.

With views of the hills along the Guadalmansa River, Estepona and the Mediterranean Sea; the name Oasis 325 stems from the average number of sunny days per year in the area. The project takes full advantage of the sunlight, with its south-facing orientation, its large glazed areas and terraces that come with every home. In addition, the development has common areas such as a swimming pool and gardens that allow residents to enjoy the Mediterranean climate.

Kronos Homes is committed to high-quality architecture and design in all its projects. In Oasis 325, the A-Cero studio reinterprets the current vogue for minimalist design to offer an architecture that is very much in line with its usual play on volumes. The quality of the materials is complemented by its avant-garde design. Also, the landscape is integrated with its surroundings, using nature as a key element that defines the project’s identity.

A bet on the Costa del Sol

In addition to Oasis 325, Kronos Homes has five more projects underway on the Costa del Sol. This is the area where the company has the largest number of projects underway: The Edge, also in Estepona; Eden in Mijas; Panorámica, in Fuengirola; La Finca (The Farm) in Sotogrande; and Horizonte, in Benalmádena.

KRONOS HOMES has  €700 million of investments in land, 12,000 homes in its portfolio and 1.5 million m² of land. The company plans to invest another 200 to 300 million euros by the end of the year, buying additional land and expanding its portfolio of homes to between 15,000 and 17,000 units.

Images: https://we.tl/t-048YFx4PBw

About Kronos Homes

Kronos Homes is Kronos’ real estate developer, focusing on residential projects with a clear commitment to architecture and design. The company was created in 2015, aiming to lead the Spanish market, with high-quality projects where we use architecture as a transformational agent, capable of energizing and enriching society. Therefore, we rely on prestigious architects and seek out innovative talent. Kronos Homes is #puredesign.

In all our developments, sustainability and integration are seen as fundamental assets.

Responsibility, rigour and dedication define our company’s values as we seek to satisfy and exceed our clients’ expectations at every stage of our projects.

KRONOS HOMES won the XI Porcelanosa Award for Architecture and Interior Design, recognizing its commitment to avant-garde architecture.

Original Story: Kronos Homes

Translation: Richard D. Turner

 

Kronos Homes Hands Over its First Developments & Invests €2bn in Land

30 January 2019 – Press Release

Kronos Homes, the residential real estate development brand of Kronos, has been consolidating its presence and position in the Iberian market with significant growth in 2018 and strong forecasts for the year ahead.

The company invested €2 billion in total during 2018 and is aiming to reach €2.4 billion in 2019. Of that amount, €700 million corresponds to investment in land in Spain and Portugal, a figure that it intends to increase by another €300 million in 2019 to reach €1 billion in land.

The focus of Kronos Homes continues to be the major cities and provincial capitals across the whole Iberian peninsula. In this way, whilst in 2018, it finished the year with a housing portfolio of 12,000 units across 16 developments, in 2019, it intends to increase that figure by 4,000 units to reach 16,000 homes in total across 24 developments (…).

In addition, in December 2018, the company delivered its first two developments on the Costa del Sol, Nature and Horizonte, located in Alicante and Benalmádena, respectively (…).

Nature and Horizonte are the first developments that Kronos Homes has delivered since it began its activity in the residential sector in Spain in 2015. The forecasts from Kronos Homes indicate that the firm will deliver 500 more homes across five developments during 2019.

Original story: Press Release

Translation: Carmel Drake

Neinor & Vía Célere Lead the Ranking of Forecast House Deliveries for 2019

28 January 2019 – Cinco Días

Year after year, the new major players in the house construction sector are seeing the numbers in their growth plans increase. During 2019, the largest property developers created since 2015, and some of those reborn from the ashes during this latest upwards cycle, are expected to approach their cruising speed, above all, the listed companies Neinor, Aedas and Metrovacesa, which have been called to lead the residential construction sector together with Vía Célere. Even so, the sector is still very fragmented with lots of small companies.

Neinor Homes and Vía Célere have become the two entities with the largest number of home deliveries this year. In both cases, 2,000 clients will receive the keys to their homes, according to figures provided to Cinco Días by around twenty property developers. In these forecasts, the companies have detailed three concepts for their plans for 2019: homes that they will launch onto the market, homes that they will start work on and forecast deliveries.

Neinor Homes, created in 2015, and led by Juan Velayos (…) expects to start work on 3,000 homes this year, coming close to the cruising speed that it defined during its IPO, and it will start to market another 2,000 units.

Meanwhile, Vía Célere, controlled by the US fund Värde Partners, is in the middle of integrating the assets of Aelca, the other property developer owned by Värde, which has now emptied its portfolio (…). It is the only one of the large players that is not yet listed on the stock market; its plans in that regard were postponed last year.

The listed firm Aedas, also created in 2017 with land from another US fund, in that case, Castlelake, is also perceiving an upwards turn in its numbers. This year, it will hand over 1,055 homes, start marketing 2,500 homes and start building 3,000 homes, just two years after first appearing on the stage, with David Martínez as its CEO.

Meanwhile, Metrovacesa, the other large listed company, controlled by Santander (and in which BBVA holds a minority stake), clearly leads the business plans, with up to 4,500 homes to be newly marketed and whose construction will be launched. This one-hundred-year-old real estate company, which was cleaned up by the banks following the crisis, launched its new project in 2017 with Jorge Pérez de Leza, from Grupo Lar, as the CEO.

In terms of those entities backed by funds, the rescued firm Habitat also stands out, reactivated last year by Bain Capital, and which is planning to market 3,000 homes this year. Similarly, Cerberus took control of Inmoglacier in 2017 (…). That firm declined to provide its forecasts to this newspaper, but it is also set to play a significant role, given that it has become one of the real estate arms of the US fund, one of the most active in the purchase of assets from the banks and which also owns Haya Real Estate as its servicer.

The group of twenty-odd companies consulted will hand over almost 16,000 homes this year, will start work on 34,000 units and will begin marketing another 30,000 properties. These figures reflect the enormous fragmentation in the sector, which in the last 12 months has started 103,000 homes in total, according to figures from the Ministry of Development as at October 2018.

Small specialist property developers still carry a lot of weight, unlike in other countries where large players exist. Moreover, even though the rate of residential construction has taken off since 2014, it is still well below the peak of 2006 when 865,000 building permits were granted.

In terms of the new players also boosted by the international funds, they include other developers with a high rate of house sales: AQ Acentor (owned by the German fund Aquila), which is going to put 1,700 homes up for sale; Kronos Homes (backed by several European and US investors), which will market another 1,600 homes; and ASG Homes (backed by the British firm ActivumSG), which plans to add another 1,000 homes.

In terms of the survivors of the crisis, Amenabar stands out, the Gipuzkoan company, which expects to start work on 3,608 homes next year and to hand over 1,245 units. Another of the stalwarts is the Madrilenian firm Pryconsa, owned by the Colomer family, which has already reached a high number in terms of house starts: 1,285. In more modest terms, other important firms include the Basque entity Inbisa and the new entity Áurea Homes, the residential subsidiary of the Navarran construction group ACR (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

M&G Teams Up With Quadratia to Invest in Residential Assets on the Alicante Coast

30 July 2018 – Alicante Plaza

The strategy being pursued by the investment funds to create joint ventures with local property developers through which to star in the resurgence of the real estate sector has reached a new high in the province of Alicante with the alliance between the British fund M&G Investments, a subsidiary of the insurance company Prudential, and the Alicante-based consultancy Quadratia. After starring in one of the largest land purchase operations in the province, with the acquisition from Sareb of the debt associated with the PP-27 of La Vila at the end of last year, M&G and Quadratia have decided to take their partnership to the next level. To this end, they have formed a joint venture company to invest in unique projects on the Costa Blanca and other points along the Spanish Coast: Quadratia Investment Partners (QIP)

“Following the successful launch of the Allonbay Village project in the El Torres de la Vial cove”, explain sources at the company, the British fund has teamed up with the Alicante-based property developer “through its fund DOF IV to back the development of unique residential projects along the Mediterranean coast”. The objective of Quadratia Investment Partners is “to acquire urban land and projects under construction, primarily in the hands of financial institutions in complex situations”, to manage that land and develop unique residential properties close to the sea. The target audience of these projects will be domestic and overseas buyers looking for second homes.

Following its constitution, QIP has already acquired another plot in the La Tellerola sector of La Vila on the beachfront, taking advantage of its strong presence in this municipality, and it has entered the market in Calp, with the purchase of two plots, one of which is going to be used for the development of a building with 100 homes, standing more than 25 storeys high, with views over the Peñón de Ifach and Playa del Arenal. But the new investment group’s interest is not limited to the Costa Blanca. According to the same sources, the firm is looking for land with the same characteristics on the coast of Valencia, and is also already closing several operations on the Costa del Sol, a market that is similar to that of Alicante but which “warmed up” first, according to their explanations.

According to the sources, the consultancy firm Quadratia has specialised in working as a local expert for various investment funds (on behalf of which it undertakes the integral management of projects), including Kronos Homes and ASG Homes, which have also starred in several operations in the sector in the province. In this case, however, the partnership with M&G Investments goes further: the Alicante firm has acquired a “significant” stake in the share capital of the new group, and the CEO of Quadratia, Enrique Gallego, has been appointed to the new group’s Board of Directors. Moreover, the former director of Mediterranean, Pablo Lucas Guerrero, was recently appointed as an independent director, to support this same investment strategy on the Costa del Sol, where the group has now completed its first investment in the Torrox-Nerja area: a 131-home development with panoramic views over the sea (…).

With more than GBP 240 billion under management, M&G is the investment fund management company of the Prudential plc insurance group, listed on the London Stock Exchange and member of the FTSE 100, with more than 160 years in the insurance, investment and loan businesses. In terms of Quadratia, it is led by the second generation of Grupo Alicante Urbana. Founded in 2014, it makes contact with investment funds interested in the residential sector in the province of Alicante and provides them with a comprehensive range of legal services (…).

Original story: Alicante Plaza (by David Martínez)

Translation: Carmel Drake

Land Oligopoly: 10 Cities Account for 55% of the Developments Underway in Spain

31 May 2018 – Eje Prime

The data is conclusive: ten cities account for 55% of the residential developments underway in Spain. They constitute a municipal land oligopoly, which is now showing signs of tension on the demand side given the lack of buildable land available for development and the delays by the public administrations when it comes to approving building permits. “The concentration of the population in the major cities is a phenomenon that is going to increase over the next few years”, predicts Sergio Gálvez, Director of Strategy and Investment at the property developer Aedas Homes in the context of the Madrid Real Estate Fair (SIMA) conference on land and its strategic market.

The executive of the listed Spanish company also explained that the delays in the granting of licences in certain cities are lasting for up to ten months. Gálvez regrets that “any delay suffered in the production chain clearly results in a higher sales price for the end client”.

The Director of Aedas, who believes that “the public administrations still have a long way to go in terms of the agility of the licence-granting process”, was accompanied at the roundtable by Ignacio Ocejo, Partner at Kronos Homes. The director of the Spanish property developer turned the spotlight onto financing: “the situation in the financial world has changed drastically with the new cycle; in the past, the supply could have been four times larger”.

Nevertheless, Ocejo was favourable of the fact that land financing is now “much more controlled” because capital can still be obtained under reasonable conditions. “I do not think that it is a problem, the banks themselves are being proactive when it comes to financing; the problem is more that there are fewer entities”, said the Director of Kronos.

Meanwhile, the Commercial Director of the appraisal firm Tinsa, Pedro Soria, seemed more concerned than his roundtable colleagues about land and its overheating (…) “In some places, we are already seeing price caps on land”, says Soria, “the only option left if we want to achieve the desired returns is to raise house prices”. In the event that land prices continue to rise, the Tinsa executive sees a “risk”, nevertheless, the market could be more profitable on the land investment side than when it comes to house building itself.

Spain is seeing an improvement in its new home permits once again, but the figures are still well below the more than 800,000 permits granted in the most active years of the boom in the 2000s. In this regard, Ocejo explains that “in a scenario of stability and compared with the previous cycle”, an increase in new builds at a rate of between 25% and 30% would be “positive”. “A healthy market for me would see the construction of between 130,000 and 160,000 new homes each year in Spain”, added the Partner of Kronos Homes.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Kronos Finalises €400M Investment in Cataluña with Land Purchases in Gavá & Sant Cugat

1 June 2018 – Eje Prime

Kronos Homes wants to be a leading player in the Catalan residential market. The Spanish property developer has just completed the purchase of two plots in Gavá and Sant Cugat del Vallés. These two operations form part of the significant investment plan that the company has initiated in Cataluña, where it already has investments amounting to €400 million. “The objective is to close at least two more operations in Cataluña before the end of 2018”, explained Manuel Holgado, Partner at the real estate firm, speaking to Eje Prime.

The first of the acquired plots, in Gavá, has a surface area of approximately 173,500 m2, with capacity for the construction of 1,500 homes. The company plans to start marketing this project within two years.

In the case of the plot in Sant Cugat, it is located in the centre of the prime Barcelona city and spans 33,800 m2, on which 320 homes are going to be built. These more than 1,800 homes will be added to the 900 units that the firm currently has underway in four other projects.

Two of those projects are located in Tarragona, a province in the south of Cataluña, with one development in the provincial capital and one in Calafell. Both will start to be marketed this June and the property developer, founded in 2014 by Saïd Hejal, has taken advantage of the opportunity presented by the Madrid Real Estate Fair (SIMA) to unveil the two developments.

The investment by Kronos is Cataluña is going to continue to increase over the coming months and Holgado says that “we would like to close at least two more operations before the end of 2018”. The company’s Director General, Majda Labied, also points out that “we have just opened an office in the centre of Barcelona, which strengthens our 100% commitment to Cataluña”.

Currently, the property developer has two promotions in the province of Barcelona, namely H20 and O12, two residential projects with an innovative design, which are located in the maritime area of Badalona. The first promotion has 252 homes with 25 different types of homes.

Entry into the Costa Brava

Having entered Barcelona and Tarragona, Kronos now only has Girona and Lleida left to conquer. The Costa Brava is one area “where we have been working actively for a while”, explains Holgado, although the property developer has not yet found the right opportunity to start a project there.

The forecast by Kronos Homes for the next four years involves it doubling the number of homes underway in Cataluña at the moment. The real estate firm also has a presence in Madrid, the Costa del Sol, Andalucía and Levante, and wants to branch out into new markets over the next few years. Areas such as Euskadi, for example, have always been on the company’s radar. The firm is keen to invest and position itself as one of the leading property developers in Spain.

Investment of €500 million in land all over Spain 

To build homes, you need land and, to that end, Kronos is going to invest €500 million between now and 2021 in the purchase of primarily residential land. The company will thereby acquire sufficient land to build 8,000 homes all over the country.

With a land bank spanning more than 1 million m2, spread between Madrid, Cataluña, Costa del Sol and Alicante, the intention of Hejal and the other shareholders that support him, including, in addition to Holgado and Labied, Ignacio Ocejo and Enrique Feduchy, is to expand the business to more Spanish provinces. The firm is currently making headway in the provinces of Córdoba, Sevilla and Cádiz, amongst others.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Kronos to Invest Another €500M by 2021 to Become the New Real Estate King

16 May 2018 – Press Release

The real estate developer created by a former director of Fortress now owns a  land portfolio spanning more than 1 million m2 for the construction of 8,000 homes.

Led by the investment manager Kronos, the real estate company Kronos Homes has become one of the largest property developers in the country, in just four years, with a land portfolio that exceeds 1 million m2.

Saïd Hejal leads the company. The Parisian founded Kronos in 2014, after several years studying the Spanish market from London as the head of one of Fortress’s investment funds. “I was in charge of investments in Southern Europe (Portugal, Spain, Greece and France) for Fortress, with a particular focus on Spain from 2012 onwards. We chose Spain because we believed that it was the market with the greatest future growth potential with respect to the other European countries”, explains Hejal, Managing Partner of Kronos.

Unlike other investors, the former executive of Fortress opted to create his own property developer and grow it to become one of the largest landowners in the country. “I have worked for years in the US, and there, the property developers were focused on design; in Spain, we saw the opportunity to create a company based on design, that’s why we chose to create a company, with a new image, rather than acquiring an existing one”.

To carry out this project, Hejal went to a group of investors who, through Kronos Asset Management, put together the funds to create the Spanish developer. “Kronos is the owner of Kronos Homes, the brand of the residential developer. We have an office in London since most of our investors are based all over Europe; they are family offices and global investors. In total, we have around 15 investors, who arrived after the company was created, although the family that founded Kronos is also still with us”, explains.

Since its creation, Kronos Homes has invested €500 million in the purchase of land. “We have a portfolio spanning 1 million m2, which will allow us to develop 8,000 homes. The plots are located in Madrid, Cataluña, Costa del Sol and Alicante. Now we are entering some of Spain’s large capitals such as Córdoba, Sevilla, Tarragona and Cadiz”, says Hejal who predicts more new acquisitions. “We plan to invest another €500 million over the next 24 to 36 months”.

To this end, Kronos is backing the selective purchase of land. “We have acquired two thirds of our current portfolio from banks and the other third from developers; we have also completed several operations with Sareb and we will continue to work in this way”.

Thus, he rules out the possibility of corporate operations, giving priority to organic growth. “We are not interested in buying other companies. Such deals typically involve very difficult processes, combining corporate cultures and requiring a lot of time for integration.”

Kronos closed 2017 with 500 homes sold, among their developments in Madrid, Barcelona, Costa del Sol and Alicante. “2017 was quite a good year, better than expected, and 2018 is going very well, too. We have some very expensive projects and others that are more affordable. Our cheapest house costs around €145,000 and the most expensive, €2 million. The latter is a spectacular project in Estepona (Málaga), designed by Rafael de La-Hoz”.

“Our typical customers are first-time buyers, who have budgets of between €300,000 and €400,000.”

Stock market

Unlike other investors, the head of Kronos Homes is not planning to debut his firm on the Stock Exchange – “we are not interested, there are too many distractions”, he says – but he does plan stay with the company for many years. “Our plans in Spain are long term, we have already developed ten projects, this year we will deliver more than a hundred homes (133) and launch six new promotions. In 2019, we will launch another 20, including a project in Valencia that will be the tallest residential building in the city, with 34 floors”.

The plans of Kronos coincide with other ambitious bets from property developers such as Aedas, Vía Célere and Metrovacesa. “I think it is good that there is competition, it is healthy and positive for the consumer. We have positioned ourselves in a certain niche, with a focus on design and architecture, and that is what makes us different.”

Original story: Press Release

Edited by: Carmel Drake

Who are the Key Players in the Spanish Real Estate Market?

4 May 2018 – El Mundo

House sales are on the rise, as are house prices and rentals. Mortgages are also continuing their upward trend. Moreover, the resurgence of real estate activity is now a reality that can be seen in the increase in the number of new construction and real estate companies.

A recent report published by Gedesco, a firm specialising in financing for companies, says that one in four of the businesses created in Spain during the first quarter of 2018 belonged to the construction or property development sectors.

That represented a volume of almost 6,000 companies, 1.75% more than during the same quarter in 2017. With respect to the last three months of last year, the increase amounts to 21.9%.

Some good news to help us try to forget the fact that 142,576 construction companies disappeared between 2008 and January 2017 – both building firms and property developers -, according to the latest data from Spain’s National Institute of Statistics (INE).

In eight years, the sector went from having almost 360,000 companies to having just 216,987, a reduction of 39%. If we take the look at real estate companies, there were 106,375 in 2008, whereas there were just 67,812 by 2017, almost half.

The data compiled by INE reveals another interesting fact: the construction companies that had more than 5,000 employees in 2008 have disappeared. Although there were actually only three (including building firms and property developers), by 2017, there were just nine companies with 500 or more workers.

Names such as Martinsa Fadesa – created by the businessman Fernando Martín-, Astroc (chaired by Enrique Bañuelos) and Nozar went into the history books of the Spanish real estate sector, after failing to survive the impact of the recession.

Good health

Now, the outlook for the sector is looking healthy, in line with the increase in construction activity, which last year recorded a 28.9% increase in new build permits, to 80,786. According to the latest data from the Ministry of Development, corresponding to the first two months of this year, new home permits rose by 17.4% to 8,035 in February. Estimates in the sector indicate an output of 150,000 homes p.a. for the next few years.

For Elisa Valero, Marketing Director at Gedesco, “the construction sector is back in business”. Nevertheless, the director adds that “the creation of businesses has never gone away, if we look back a few years, the property developers were still there, but the volume of business creation was much lower”.

Whereas 5,000 companies are now being created, in 2011 – at the height of the crisis – just 2,000 were being constituted (…).

Success stories

Another report published in recent weeks by the College of Registrars in Spain also shows that real estate activity in the country is gaining momentum. In 2017, the weight of construction companies and property developers over the total number of businesses constituted rose to 20%, and the rate of growth in relation to 2016 was 14%.

But, looking beyond the figures and back to specific cases (…) we see, for example, that two of the largest property developers of the current cycle were created less than three years ago. The firms in question: Neinor Homes and Aedas, which were created in 2015 and 2016, respectively.

The origins of Vía Célere, another of the important property developers these days, dates back to 2007, at the height of the crisis. The firm emerged after Juan Antonio Gómez-Pintado sold the company that he had chaired, Agofer, and created Vía Célere.

In all three cases, the presence of funds in the shareholding of the companies has stimulated their rates of investment to purchase land on which to build new homes.

Second chances

On the list of property developers that have been created recently, highlights include Kronos Homes, Stoneweg and Q21 Real Estate.

There is another noteworthy name on the current panorama, which, although it cannot be considered a new company, is a clear example of the resurgence of a business after the crisis. The company in question is Metrovacesa. Following a facelift by its creditor banks, it returned to the stock market at the beginning of this year, after abandoning it in 2013.

The firm, controlled by BBVA and Santander, stands out since it is the largest landowner in Spain, amongst the listed property developers, with 6.1 million m2 of land spread over the whole country, with the capacity to build 37,500 homes.

Business transformations such as the one involving Metrovacesa were commonplace during the crisis and resulted in the appearance of new players on the real estate stage.

Another illustrative example has been the birth of the so-called servicers. These companies have emerged in recent years from the former real estate subsidiaries of the banks.

Altamira (whose origins are found in Banco Santander), Servihabitat (La Caixa), and Solvia (Banco Sabadell), amongst others, are fulfilling the mission entrusted to them: to take on the bank’s property, enabling them to complete their clean-ups and to divest the assets by taking advantage of the current boom in activity.

The servicers, whose main activity is located in the Community of Madrid, are also responsible for selling the properties of another one of the stars created in recent years: Sareb, commonly known as the bad bank.

In 2018, that company celebrates its 5th birthday, and during its short life, it has taken over the properties of the entities that have been intervened as a result of the bank restructuring (…).

In recent months, Sareb has also started to market its first new build developments constructed on own land that it holds in its portfolio. In addition, last week, it launched a campaign to sell 3,314 homes along the coast, 95% of which will be lived in for the first time by their new owners.

The Socimis

If there is one group of players that stands out above all of the other newly created real estate companies it is the Socimis.

The real estate investment companies started to trade on the Spanish stock exchange in 2012 as a result of a regulatory change introduced by the Government that gave them free reign to do so.

The Socimis Entrecampos and Promorent were the first to make their debuts. Six years on, there are 51 such companies and, according to some estimates, that number may reach 100 in the future. Merlin, Axiare, Hispania, Lar España, Testa and Colonial – the largest by volume – have all been created in the last four years and are now competing with property developers, such as Neinor and Aedas, on the real estate stage and on the stock market.

In April, one of the newest faces, Sareb’s Socimi Témpore, made its debut. In its first month on the Alternative Investment Market (MAB), it has seen its share price appreciate by 3.85%. When it made its stock market debut, the company’s valuation amounted to €152 million (…).

Original story: El Mundo (by María José Gómez-Serranillos)

Translation: Carmel Drake